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Overview

China Co-Financing Fund for Latin America and the Caribbean loan provides $50 million loan to Bancóldex for on-lending to small- and medium-sized enterprises (Linked to Record ID#86526)

Commitments (Constant USD, 2023)$51,586,691
Commitment Year•2020Country of Activity•ColombiaDirect Recipient Country of Incorporation•ColombiaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 18, 2020

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

Government Agencies

  • People's Bank of China (PBC)

Cofinancing agencies

Government Agencies

  • Development Finance Institute Canada (FinDev Canada)

Intergovernmental Organizations

  • IDB Invest (formerly Inter-American Investment Corporation or IIC)

Receiving agencies

State-owned Banks

  • Banco de Comercio Exterior de Colombia S.A. (Bancóldex)

Implementing agencies

Intergovernmental Organizations

  • China Co-Financing Fund for Latin America and the Caribbean (CHC)

State-owned Banks

  • Banco de Comercio Exterior de Colombia S.A. (Bancóldex)

Loan desecription

China Co-Financing Fund for Latin America and the Caribbean loan provides $50 million loan to Bancóldex for on-lending to small- and medium-sized enterprises

Interest type•Unknown

Narrative

Full Description

Project narrative

On September 18, 2020, the China Co-Financing Fund for Latin America and the Caribbean signed a $50 million loan agreement with Banco de Comercio Exterior de Colombia S.A. (Bancóldex) — a state-owned commercial bank that operates as Colombia's entrepreneurial development and export-import bank — for on-lending to small- and medium-sized enterprises. The borrowing terms of the loan are unknown. However, it is known that the borrower was expected to use the loan proceeds to support the ‘Colombia Responde para Todos’ program, which provided liquidity to small- and medium-sized enterprises facing cash flow pressures due to lockdowns and economic activity paralysis resulting from the COVID-19 global pandemic. The loan from the China Co-Financing Fund for Latin America and the Caribbean was secured alongside two additional loans: a $100 million loan from the Inter-American Investment Corporation (IDB Invest) and a $20 million loan from Development Finance Institute Canada (FinDev Canada).

Staff comments

1. The China Co-Financing Fund for Latin America and the Caribbean was established on January 14, 2013 with a contribution of $2 billion by the People's Bank of China. It is administered by the IDB. For more information, see umbrella Record ID#86526. 2. The IDB Invest project identification number is 13100-01 or IDBI-13100-01.